Self Assessment for over £10,000 interest. Before or after tax?

necronom

With the interest rate being good again, I'm getting to the point where I might actually go over the £10,000 interest.  Does anyone tell me when this happens, so that I know to do a self assessment?
And how do I count the £10,000?  I guess I ignore the ISA interest, but what about if I get £10,100 before tax.  That means I'm not earning over £10,000 as I'll only get 80% of that.  I can't see anywhere on the Government site that explains if it's before of after Tax.  It just says earnings, which will be a lot less after I'm taxed through PAYE.
I'm probably going to open a 6.1% account in the next day or two, so that will probably tip me over the limit.
I guess I also ignore my interest from my Stocks and Shares ISAs, which used to be PEPs?
Do I have to manually add up any taxable interest between 1st April each year, then fill in a form for the previous Tax year?
Thanks for any help.  I've never had to do a tax form before.

Dazed_and_C0nfused

necronom said:

With the interest rate being good again, I'm getting to the point where I might actually go over the £10,000 interest.  Does anyone tell me when this happens, so that I know to do a self assessment?
And how do I count the £10,000?  I guess I ignore the ISA interest, but what about if I get £10,100 before tax.  That means I'm not earning over £10,000 as I'll only get 80% of that.  I can't see anywhere on the Government site that explains if it's before of after Tax.  It just says earnings, which will be a lot less after I'm taxed through PAYE.
I'm probably going to open a 6.1% account in the next day or two, so that will probably tip me over the limit.
I guess I also ignore my interest from my Stocks and Shares ISAs, which used to be PEPs?
Do I have to manually add up any taxable interest between 1st April each year, then fill in a form for the previous Tax year?
Thanks for any help.  I've never had to do a tax form before.

There is no tax deducted from the vast vast majority of interest nowadays.

It is £10,000 of taxable interest which is key.  That would be what you have earned.  Paying tax later doesn't mean you haven't earned it in the first place.

You are hugely over implicating things by worrying about tax exempt things.

The tax year runs from 6 April of one year to 5 April the following year.  1st April is irrelevant.

You complete a tax return after the tax year has ended.  You should file it by 31 January at the latest (the first one after the tax year ends).  And any tax owed must be paid by the same date.

Don't wait for HMRC, you should just register and file the return if you meet the criteria.

Ocelot

Yes, ignore ISA interest.

Bigwheels1111

Over 10k of interest after ISA has been deducted a tax return is needed.
How much are your earnings, £12,570 or more. Tax year is 6/4/23 - 5/4/24.
If you earn £12.570, you can get £6,000 of interest tax free.
Only paying 20% on £4100.
Using starter savings rate of 5k and PSA 1k.
If you earn £15,570 you will still get 2k of starter savings and 1K PSA so taxed on 7k of savings.
The way I look at it is 80% of something is better than the 1% or 1.5% from 2 years ago.

Ayr_Rage

Forget about ALL ISA interest and dividends, I don't know why other members are even mentioning them.

The only interest that goes on a Self Assessment form is that you receive from banks and building societies.

Suggest you get all you income sources written down and then go online and fill in the those details. 

Here's the link

https://www.gov.uk/check-if-you-need-tax-return

Dazed_and_C0nfused

Forget about ALL ISA interest and dividends, I don't know why other members are even mentioning them.

Because the op mentioned them twice.

wmb194

Ayr_Rage said:

The only interest that goes on a Self Assessment form is that you receive from banks and building societies.

Careful, there are other sources of interest as well e.g., corporate bonds, government bonds, OIECS/unit trusts and equities can sometimes pay interest instead of or as well as dividends. These all need to be included.

Ayr_Rage

@wmb194, OK, agreed.

For the OP, get a list of all your income that is not from an ISA product and use the gov.uk page I posted.

Swipe

Filling in a self assessment is very simple if you only receive interest. Once you've done it once, it takes very little time and there are lots of useful guides out there. The only downside being if you owe more than £1000 tax you have to stump up half of the next year's up front unless you know your tax circumstances will change.

necronom

Thanks everyone.
I'm REALLY hoping the Personal Savings Allowance goes up, as £1000 interest is something you can hit with about £16000 in savings now.

Albermarle

necronom said:

Thanks everyone.
I'm REALLY hoping the Personal Savings Allowance goes up, as £1000 interest is something you can hit with about £16000 in savings now.

We all can hope and it might happen as an election sweetener. However be aware that in the past there was no personal allowance at all, and such things hardly exist in most other countries. So along with ISA's, the UK already has a rather generous tax regime on savings compared internationally.